The parcel empires strike back as smaller players take stock
Over the past couple of years small parcel carriers have gained ground, as behemoths FedEx, ...
© Jackbluee
By Alex Lennane
US trucking and delivery companies should beware. After a long battle, FedEx has agreed to settle a dispute about whether it misclassified its drivers as independent contractors, via a $228m fund. It was in FedEx’s interest to fight this as the independent contractor status was a key component of its business model. But 2,300 FedEx Ground drivers didn’t agree. As this Forbes article notes, FedEx forced the costs branded trucks, uniforms, scanners, fuel, maintenance, insurance and more on to its drivers, who were not paid for missed meals, rest periods, overtime compensation and so on. This particular settlement only relates to California – and with other cases going on throughout the US, the case has been called “seismic”.
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